4 ms·
Typically there are different types of orders as well: https://en.m.wikipedia.org/wiki/Order_(exchange) https://en.m.wikipedia.org/wiki/Order_(exchange) For a
by ThePhysicist 6y ago
Typically there are different types of orders as well:
https://en.m.wikipedia.org/wiki/Order_(exchange) https://en.m.wikipedia.org/wiki/Order_(exchange)
For assets with high liquidity there will always be buyers and sellers, depending on how many are on either side and what their price limits are (if they set any) transactions will occur at different prices. Depending on the order size the price can vary even within a single order (if you need multiple buyers or sellers with different limits to fill it). The market price is just an indication of the current equilibrium price at which there is the most liquidity for an asset. If there are more people that want to sell than people that want to buy at a given price the sellers will have to reduce their ask price to close orders, that drags the market price down. The same dynamic moves the price up when there are more buyers than sellers.